GLOBAL port operator International Container Terminal Services, Inc. (ICTSI) has sold its subsidiary, Cebu International Container Terminal, Inc. (CICTI), to property developers Cebu Asian Rim Property and Development Corp. and Hongkong Land (Philippines) BV.
ICTSI announced the sale in a disclosure to the Philippine Stock Exchange (PSE) last week.
The port operator, along with other CICTI stockholders, signed a sale and purchase agreement last Nov. 28 for the disposal of 250 million CICTI common shares at P12.93 per share to Cebu Asian Rim and Hongkong Land.
The shares represent 100% equity interest in CICTI’s issued and outstanding capital stock. ICTSI owns 51% of the Cebu terminal.
After fulfilling all the pre-completion covenants in the agreement, ICTSI and the other CICTI shareholders will execute a deed of absolute sale in favor of the buyers on or before Jan. 10 2015, the port operator disclosed to the PSE.
CICTI is the registered owner of a 200,000 square meters of land in Mandaue City.
ICTSI has reported that net income in the nine months to Sept. 30 rose 22% to $128.8 million on stronger revenues and margins.
The company recorded revenues of $624.7 million for the period, up 19%, and volume growth of 13% to 4.6 million twenty-foot equivalent units, on increased international and domestic trade.
For the third quarter, net profit rose 29% to $45.9 million while revenues from port operations surged 17% to $211 million.
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